OpenAI founder Sam Altman made a bold decision on Monday, turning down Elon Musk's reported $100 billion bid to acquire the artificial intelligence behemoth. Musk, along with a group of investors, put forward a $97.4 billion offer to purchase the nonprofit controlling OpenAI, as confirmed by their legal representative Marc Toberoff. This unsolicited bid was initially disclosed by The Wall Street Journal.
The Standoff
Expressing his stance through Toberoff, Musk stated, "It's time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens." In a swift response, Altman took to X to assert, "No thank you, but we will buy Twitter for $9.74 billion if you want."
A War of Words
Musk's retort of "Swindler" further fueled the ongoing feud between him and Altman. Both co-founders of OpenAI, their relationship soured over time, with Musk even dubbing Altman as "Swindly Sam," while Altman countered by labeling Musk a "bully."
Strategic Moves
Recently, Musk criticized a substantial AI initiative, partially funded by OpenAI, aimed at establishing data centers in the U.S. He questioned the financial feasibility of the venture, alleging that its backers lacked sufficient funds.
The potential acquisition of OpenAI by Musk, backed by prominent firms like Valor Equity Partners, Baron Capital, and others, could complicate Altman's plans to privatize the company. The transition to a commercial entity necessitates the purchase of assets from the controlling nonprofit at a fair valuation. Musk's aggressive bid might drive up asset values, posing a financial challenge for the for-profit arm of OpenAI.
Looking Ahead
Altman's resolute stance against Musk's offer underscores his commitment to preserving OpenAI's ethos and mission. As the tech industry watches this high-stakes standoff unfold, the future of OpenAI remains uncertain amidst conflicting visions and competing interests.
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